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Scan talks system builder survival at ISS

by Scott Bicheno on 26 April 2008, 10:56

Quick Link: HEXUS.net/qamvw

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Dare to be different

It’s no big secret that it’s not easy trying to survive, let alone thrive as a system builder these days.

The commoditisation of PCs at entry level has led consumers to expect a free laptop every time they buy a full tank of petrol – and let’s face it, it won’t be long before they cost about the same.

The only companies that are able to provide these throw-away PCs and still turn a profit are those that have the largest economies of scale, like HP, Dell and Acer. By choosing to compete primarily on price, in a matter of a few years the industry has made it impossible for all but the biggest system integrators (SIs) to do so.

Probably the most common question asked of Intel at the channel event it hosted was “What are you doing to help the channel?” Its answer was the same as every other large technology company we have encountered has given when asked that: “We are providing the tools for you to succeed, but it’s up to you to decide how to use them.”

This stance boils down to two propositions. The first is: ‘Here are all these products, why don’t you find out which ones your customer needs and sell them to them. The second is: ‘Here are all these products, why don’t you learn all about them and then use your knowledge to turn them into solutions your customers might want.

The latter proposition is clearly the more risky one, but it’s also the one that gives the SI or VAR the greater chance of creating a unique proposition, something that Elan Raja (pictured), one of the directors of Scan Computers International, believes smaller system builders have to do to survive.

‘It’s all about creating differentiators,’ says Raja, speaking to HEXUS.channel at EMEA ISS 2008. ‘We put a lot of emphasis on pushing the boundary of a high-end PC because we’ve found that the prestige of creating an “Ultimate PC” causes a trickle-down in demand for out more modestly priced PCs.’